Andy Towle reports a response from Microsoft CEO Steven Ballmer to charges that the company's lack of support for Washington's recently-defeated LGBT rights bill was the result of being cowed by the boycott threats of a fundamentalist preacher (see here and here). In part, Ballmer states:
"There have been several news stories that imply that Microsoft changed
its position on an anti-discrimination bill, HB 1515, because of
pressure from a conservative religious group. I want to make it clear
that that is not the case.When our government affairs team put together its list of its
legislative priorities in Olympia before the Legislative Session began
in January, we decided to focus on a limited number of issues that are
more directly related to our business such as computer privacy,
education, and competitiveness. The anti-discrimination bill was not
on this list and as a result Microsoft was not actively supporting the
bill in the Legislature this year, although last year we did provide a
letter of support for similar legislation.On February 1, two Microsoft employees testified before a House
Committee in support of the bill. These employees were speaking as
private citizens, not as representatives of the corporate position,
but there was considerable confusion about whether they were speaking
on behalf of Microsoft.Following this hearing, a local religious leader named Rev. Ken
Hutcherson, who has a number of Microsoft employees in his
congregation, approached the company, seeking clarification of whether
the two employees were representing Microsoft's official position. He
also sought a variety of other things, such as firing of the two
employees and a public statement by Microsoft that the bill was not
necessary.After careful review, Brad Smith informed Rev. Hutcherson that there
was no basis for firing the two employees over the misunderstanding
over their testimony, but did agree that we should clarify the
ambiguity over the employee testimony. Brad also made it clear that
while the company was not taking a position on HB 1515, the company
remains strongly committed to its internal policies supporting
anti-discrimination and industry-leading benefits for gay, lesbian,
bisexual, and transgender employees."
Ballmer continues, considering whether it is proper for a company to take positions on social issues:
"It's appropriate to invoke the company's name on issues of public
policy that directly affect our business and our shareholders, but
it's much less clear when it's appropriate to invoke the company's
name on broader issues that go far beyond the software industry – and
on which our employees and shareholders hold widely divergent
opinions. We are a public corporation with a duty first and foremost
to a broad group of shareholders. On some issues, it is more
appropriate for employees or shareholders to get involved as
individual citizens. As CEO, I feel a real sense of responsibility
around this question, and I believe there are important distinctions
between my personal views on policy issues and when it's appropriate
to involve the company."
On its face, Ballmer's statement would appear to be a reasonable recognition of a corporation's primary obligation to its shareholders being to maximize profits (following Milton Friedman's much-cited line formulation). But let's be clear about what the particular piece of legislation at issue here involved. HB 1515 proposed to include sexual orientation in Washington's non-discrimination law. Specifically, the bill sought to protect individuals from discrimination in "employment, public accommodations, real estate transactions, insurance and commerce." Opponents of the bill argued, incoherently, that including prohibiting discrimination on the basis of sexual orientation constituted a constraint on free speech and thought ("It should not be the law that people cannot speak out against an unnatural state; you cannot force people to accept these practices.").
Ballmer's position, then, is that while Microsoft may support diversity within its own walls, for the company to lend its support to that principle's applicability for the community at large is somehow beyond the pale. What is interesting in Ballmer's discomfort is the assumption that the company's policies and actions are separable from taking positions on social issues.
For a discussion of corporations' social responsibilities and their corporate policies, Don Herzog, writing at Left2Right has a worthwhile article here. Herzog writes that:
"[F]irms that don't have pro-diversity policies are doing politics, too. What you might see as natural or unremarkable, just the ordinary pursuit of profits, is in fact tantamount to a decision that diversity doesn't matter in the workplace. It is a perfectly defensible politics. But it's political all the same.
What about this rule? 'Corporations should maximize their profits within the constraints of the law.' That too is perfectly defensible. But it isn't knock-down slam-dunk obviously the right view. Take a corporation that believes environmental regulation is too lax and has grave concerns about polluting the environment. (No, not the kind of corporation that seizes on green causes as a pretext for gaining a competitive advantage.) Are they obliged to ignore their own concerns?
So firms are inescapably making social policy."